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Lansdowne Oil & Gas updates on cash position as investors look forward to drilling

Next year promises excitement for investors as a new programme of drilling aims to take the Barryroe field towards production
oil and gas operations
Appraisal drilling starts in 2019

Irish explorer Lansdowne Oil & Gas Plc (LON:LOGP) has updated on its financial position, as it received a £50,000 injection from an exercise of share warrants.

Brandon Hill Capital exercised 5mln share warrants, each priced at 1p (compared to a market share price of 2.08p), and it retains a further 8.21mln warrants which are similarly ‘in the money’.

READ: Lansdowne looks forward to new Barryroe drilling with “great excitement”

Lansdowne told investors that its cash balance stands at £266,000, post warrant exercise, and noted that its running costs amount to around £35,000 per month. The exercise of the remaining Brandon Hill warrants will deliver a further £96,345 of capital to the company.

The update comes after the recent binding farm-out deal for the Barryroe oil field which will deliver a new well drilling programme, supported by non-recourse financing, with operations anticipated next year.

Barryroe on a path to production

In September, Barryroe operator Providence signed a binding partnership deal with APEC, detailing a path to production for the undeveloped Irish oil field. It starts with an appraisal programme next year.

Together Providence, APEC and Lansdowne will initially drill four new vertical wells and one horizontal sidetrack. APEC then has an option to extend the programme, to add a further two horizontal wells.

READ: Providence Resources tipped for near 200% upside ahead of pivotal Irish well programme

In the current quarter, operations are being advanced to survey the proposed well sites. Rig mobilisation will begin in the second quarter of 2019 thus setting in motion a programme that, if successful, Barryroe will become Ireland’s first commercial offshore oil project.

Providence and Lansdowne’s share of the programme costs are to be covered by a non-recourse funding facility, whereby Chinese funds will be provided and later returned through accelerated repayment (basically, the partner will receive a larger share of the early revenues).

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